Tata Technologies IPO: Market watchers and Tata Motors shareholders have been busy since Tata Technologies – India’s 15th largest IT company – submitted DRHP (Draft Red Herring Prospectus) to the Securities and Exchange Board of India (SEBI) to launch its initial public offering Count the benefit flowing to the Indian car major’s balance sheet after this value unlock.
Tata Technologies IPO: Market watchers and Tata Motors shareholders have been busy since Tata Technologies – India’s 15th largest IT company – submitted DRHP (Draft Red Herring Prospectus) to the Securities and Exchange Board of India (SEBI) to launch its initial public offering Count the benefit flowing to the Indian car major’s balance sheet after this value unlock.
As noted in Tata Technologies DRHP, Tata Motors has purchased shares in Tata Technologies for cash €7.40 per share and in line with market expectations, Tata Technologies’ market cap is expected to be around €18,000 to €20,000 crore, which means a share of Tata Technologies would cost around €500 each, resulting in an increase in value of approximately 6,650 percent on Tata Motors’ investment in Tata Technologies Ltd. led. Meanwhile, the gray market is also bullish on Tata Technologies’ IPO. According to market watchers, Tata Technologies stock price is trading around €830 per share.
As noted in Tata Technologies DRHP, Tata Motors has purchased shares in Tata Technologies for cash €7.40 per share and in line with market expectations, Tata Technologies’ market cap is expected to be around €18,000 to €20,000 crore, which means a share of Tata Technologies would cost around €500 each, resulting in an increase in value of approximately 6,650 percent on Tata Motors’ investment in Tata Technologies Ltd. led. Meanwhile, the gray market is also bullish on Tata Technologies’ IPO. According to market watchers, Tata Technologies stock price is trading around €830 per share.
Tata Technologies IPO Ratings
Commenting on expected valuations of Tata Technologies IPO, Anuj Gupta, Vice President – Research at IIFL Securities said: “Tata Technologies Ltd market capitalization is expected to increase €18,000 to €20,000 crore and the public offering will benefit Tata Motors’ balance sheet to a greater extent and it would be an appreciation by the automajor of its investment in the forthcoming IPO.”
Tata Technologies IPO Ratings
Commenting on expected valuations of Tata Technologies IPO, Anuj Gupta, Vice President – Research at IIFL Securities said: “Tata Technologies Ltd market capitalization is expected to increase €18,000 to €20,000 crore and the public offering will benefit Tata Motors’ balance sheet to a greater extent and it would be an appreciation by the automajor of its investment in the forthcoming IPO.”
Tata Technologies IPO Award
Regarding the expected price based on Tata Technologies’ IPO ratings, Abhay Doshi, founder of UnlistedArena.com, which trades unlisted shares, said, “Tata Technologies (IPO) pricing is ultimately driven by the company. However, market analysts use close competitors such as KPIT Tech and Tata Elxsi to estimate its potential valuation. Based on their current P/E of 68x and 55x respectively (TTM basis), it is estimated that Tata Technologies could be valued in between €700 to €880 if we consider their annualized FY23 EPS of around €13.”
Tata Technologies IPO Award
Regarding the expected price based on Tata Technologies’ IPO ratings, Abhay Doshi, founder of UnlistedArena.com, which trades unlisted shares, said, “Tata Technologies (IPO) pricing is ultimately driven by the company. However, market analysts use close competitors such as KPIT Tech and Tata Elxsi to estimate its potential valuation. Based on their current P/E of 68x and 55x respectively (TTM basis), it is estimated that Tata Technologies could be valued in between €700 to €880 if we consider their annualized FY23 EPS of around €13.”
“However, Tata Group is widely known for its investor-friendly approach and as such there is a chance that the IPO will be offered at a reasonable price, leaving a lot of value on the table for investors,” added Abhay Doshi.
“However, Tata Group is widely known for its investor-friendly approach and as such there is a chance that the IPO will be offered at a reasonable price, leaving a lot of value on the table for investors,” added Abhay Doshi.
Tata Technologies share price today in the gray market
Responding to Tata Technologies shares in the unlisted market, Abhay Doshi said, “Investor bullishness is reflected in the fact that Tata Technologies unlisted shares have already been exceeded €830. Overall, while final pricing for the IPO remains to be seen, it is clear that there is significant interest in the company.”
Tata Technologies share price today in the gray market
Responding to Tata Technologies’ shares in the unlisted market, Abhay Doshi said, “Investor bullishness is reflected in the fact that Tata Technologies’ unlisted shares have already been exceeded €830. Overall, while final pricing for the IPO remains to be seen, it is clear that there is significant interest in the company.”
Date and time of Tata Technologies IPO
When asked about the date and time of Tata Technologies’ IPO, Avinash Gorakshkar, Head of Research at Profitmart Securities, said: “We can expect SEBI’s approval of Tata Technologies’ IPO in the current quarter and after that we can’t expect more than two months add to. This means that we can expect Tata Technologies’ IPO to reach the primary market by the end of July this year. However, there is no safe timeframe for SEBI to agree to a DRHP.”
Date and time of Tata Technologies IPO
When asked about the date and time of Tata Technologies’ IPO, Avinash Gorakshkar, Head of Research at Profitmart Securities, said: “We can expect SEBI’s approval of Tata Technologies’ IPO in the current quarter and after that we can expect at most two more months add to. This means that we can expect Tata Technologies’ IPO to reach the primary market by the end of July this year. However, there is no safe timeframe for SEBI to agree to a DRHP.”
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage firms and not Mint. We advise investors to consult certified professionals before making any investment decisions.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage firms and not Mint. We advise investors to consult certified professionals before making any investment decisions.
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